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1. There was not adequate funds and financing for such an extensive project. 2. There were many time-consunling law suits involvillg water rights. Moreover, "the general Land Office made an adverse report on the New Castle Reclamation Co. in the matter of approving the water supply for desert entry." (Jan. 1920 Report to Federal Land Bank State. Engineers from Engineer Appraisalj 3. The reservoir failed, due to leakage, which developed in the storage hasin making it possihle to store water only a short period of time in excessively wet years." The volcanic formation would not stand the tremendous weight of the water." Many people never did give up the New Castle Project plan in general, or fighting for water rights. .4n example of this is the statement made in 1937 by J. X. Gardner - "the Grass Valley Reservoir leaks approximately 8 to 10 second feet of water, hut, the leakage could be stoppcd with a $10,000 expenditure." In July of 1937, Milo B. Williams, Regional Chief Engineer for the State of Utah, interviewed Lehi about "Water Utilization Investigation for Newcastle areas'' and reported the following: "Lehi W. Jones, Cedar City, Utah present Superintendent of Water for the Grass Valley Irrigation Corporation. Mr. Jones is also a banker in Cedar City, owns 1252 shares of irrigation stock and has a son, T. W. Jones, who owns 390 shares. T. W. Jones is one of the farmers and lives out in the Escalante Desert on the far end of the Newcastle Canal which it is proposed to ahandon. Mr. Lehi W. Jones states that his son will be willing to transfer his shares to land which they now own in.the Newcastie area if a general readjustment is consummated. Mr. Jones thinks the present system, if put into proper condition, would supply water for 1,000 to 1,200 acres of land if all the water could be used in the immediate Newcastle community area. Mr. Jones is particularly interested not only in seeing the Newcastle community rehahilitated by better use of the available water, hut also very anxious to prevent the loss of the surplus Santa Clara Creek waters to the State of Utah which is the case the whrn such waters flow into the Virgin River d u r i n ~ winter months and are added to the waters of the Colorado. He believes the only avail:~hlelands on which this water ran he used are the lands in the Newcastle-F.valante Desert area through the inter-mountain diversion."" When thinss got difficult and the hills could not he paid, the people hegan dropping out of the company, a few at a time. About six fellows were left holding the "hag" with a big deht on their hands and a great deal of propert\ that had no immediate value. Even if they tried to sell the property, there would have been 110 buyers. They had a big dry rescrvoir, a tunnel from Grass Valley into Pinto Canyon, dry canals in the valley, and part of the water rights had been dissipated. With this situa157

1. There was not adequate funds and financing for such an extensive project. 2. There were many time-consunling law suits involvillg water rights. Moreover, "the general Land Office made an adverse report on the New Castle Reclamation Co. in the matter of approving the water supply for desert entry." (Jan. 1920 Report to Federal Land Bank State. Engineers from Engineer Appraisalj 3. The reservoir failed, due to leakage, which developed in the storage hasin making it possihle to store water only a short period of time in excessively wet years." The volcanic formation would not stand the tremendous weight of the water." Many people never did give up the New Castle Project plan in general, or fighting for water rights. .4n example of this is the statement made in 1937 by J. X. Gardner - "the Grass Valley Reservoir leaks approximately 8 to 10 second feet of water, hut, the leakage could be stoppcd with a $10,000 expenditure." In July of 1937, Milo B. Williams, Regional Chief Engineer for the State of Utah, interviewed Lehi about "Water Utilization Investigation for Newcastle areas'' and reported the following: "Lehi W. Jones, Cedar City, Utah present Superintendent of Water for the Grass Valley Irrigation Corporation. Mr. Jones is also a banker in Cedar City, owns 1252 shares of irrigation stock and has a son, T. W. Jones, who owns 390 shares. T. W. Jones is one of the farmers and lives out in the Escalante Desert on the far end of the Newcastle Canal which it is proposed to ahandon. Mr. Lehi W. Jones states that his son will be willing to transfer his shares to land which they now own in.the Newcastie area if a general readjustment is consummated. Mr. Jones thinks the present system, if put into proper condition, would supply water for 1,000 to 1,200 acres of land if all the water could be used in the immediate Newcastle community area. Mr. Jones is particularly interested not only in seeing the Newcastle community rehahilitated by better use of the available water, hut also very anxious to prevent the loss of the surplus Santa Clara Creek waters to the State of Utah which is the case the whrn such waters flow into the Virgin River d u r i n ~ winter months and are added to the waters of the Colorado. He believes the only avail:~hlelands on which this water ran he used are the lands in the Newcastle-F.valante Desert area through the inter-mountain diversion."" When thinss got difficult and the hills could not he paid, the people hegan dropping out of the company, a few at a time. About six fellows were left holding the "hag" with a big deht on their hands and a great deal of propert\ that had no immediate value. Even if they tried to sell the property, there would have been 110 buyers. They had a big dry rescrvoir, a tunnel from Grass Valley into Pinto Canyon, dry canals in the valley, and part of the water rights had been dissipated. With this situa157